By Jacob I. Rosenberg, CFP®
Did you know that according to a recent PwC survey, nearly half of high-net-worth investors in the United States are planning to change wealth management providers or add new wealth management relationships in the next 12 to 24 months?
If you’re wondering whether it’s time to do the same—or just checking in to see if your current advisor still fits the bill—you’re certainly not alone! Choosing the right financial advisor is a crucial decision, especially for high-net-worth individuals with complex financial needs. The person you select should not only be knowledgeable, but personally connect with you, thoughtfully manage your wealth, and deeply respect your values.
So, what key questions should every high-net-worth client ask to evaluate whether you have the right advisor? Here are 5 crucial questions to help you feel confident in your choice.
1. How do you prioritize my interests in complex financial scenarios? And are you a fiduciary?
As a high-net-worth client, the number-one question you need to ask is whether your advisor is a fiduciary. As your wealth grows and your situation becomes more and more complex, it’s essential to confirm this.
But what exactly is a fiduciary? A fiduciary is legally bound to act in your best interests, which is vital to fostering deep trust and confidence in your financial partnership. While you may assume that allowing someone to manage your money means they automatically fall under this high standard of care—that’s just not the case. In reality, not all advisors are required to meet this obligation, even though this should be a non-negotiable aspect of their role.
Clarifying this at the onset can set the tone for a transparent and honest relationship. Asking this question isn’t necessarily about verifying their commitment; it’s more about reassuring yourself of their integrity and unbiased advice.
2. How do your qualifications and experience help you handle advanced tax strategies and estate planning for complex financial situations like mine?
This next question helps you determine if your advisor has worked with clients like you and situations as complex as yours in the past. Basically, do they have experience working with clients of your caliber?
When it comes to managing complex portfolios, plans, and tax situations, the qualifications and skills of your advisor matter—a lot. Credentials like the Certified Public Accountant (CPA) and CERTIFIED FINANCIAL PLANNER™, CFP® professional designations indicate a rigorous professional education and proficiency.
These credentials help you feel comfortable that your advisor has the knowledge to handle advanced tax strategies and estate planning tailored to your needs. Do they customize? Will there be a written plan? What types of clients do they typically work with? Understanding whether they provide personalized plans and their experience with clients in similar financial situations as yours can help with your final decision.
3. How do you adjust your investment strategies during significant market dips or economic challenges?
If you’re like most successful individuals or business owners, you may worry about protecting your assets in volatile times. Knowing how an advisor handles investment strategies during significant market dips or economic challenges is crucial from the beginning—before the market turns.
Let’s face it: anyone can look like a winner when the market is hot. But the true test comes when the market takes a downturn. How they answer this question can help determine whether they will truly support you through even the tough seasons—or bury their heads in the sand.
Will the advisor move to cash? Will they consider your goals and concerns? Are they flexible? Rigid? Ultimately, an advisor whose investment philosophy matches yours is more likely to successfully (and calmly) guide you through volatile markets.
4. How do you collaborate with other professionals (lawyers, accountants) to support my financial goals?
It’s well known that high-net-worth individuals often require coordinated efforts from professionals like lawyers and accountants. This question is important because it not only reveals how your advisor works with other professionals like lawyers and accountants, but it also opens up discussions about whether they have access to their own comprehensive team. Even better if they’re right on-site.
Asking this lets you see if your advisor can offer a seamless, integrated service where a team handles every aspect of your financial planning—saving you the time, money, and hassle of stitching together advice from different sources. For busy, thriving families, this can make all the difference.
5. Can you walk me through how you calculate your fees, especially considering the complexity of my financial situation?
This last one is big—especially for high-net-worth individuals. Understanding how your advisor’s fees are calculated based on their services is key to a good working relationship.
Affluent clients, in particular, need to be aware of potential conflicts of interest. An advisor should be transparent about their fees, giving you comfort that no hidden charges or undisclosed arrangements might influence their recommendations. Knowing the comprehensive nature of services offered—such as integrated tax and investment management—can help you assess the true value provided by the advisor.
Looking for Clear Answers?
In the end, choosing the right financial advisor is crucial for paving the way to a prosperous and stable future for you and your loved ones. The questions we’ve discussed here are your gateway to a partnership that deeply values your unique needs and visions.
At Bernath + Rosenberg, we take pride in forging meaningful, highly personalized financial relationships. Our team of 100+ specialists in accounting, tax, and wealth management are eager to demonstrate how we address the complexities of high-net-worth individuals like you with integrity and sophisticated strategies.
Ready to get the answers you need? Let’s have a conversation to explore how your wealth can be managed with the care and skill you deserve. To schedule a meeting, call (212) 221-1140 or email [email protected].
About Jacob
Jacob Rosenberg, CPA, PFS, CFP®, is a co-founder and partner at Bernath + Rosenberg, a full-service accounting, tax, and wealth management firm with offices in Monsey, NY, Lakewood, NJ, Cedarhurst, NY, and Miami Beach, FL. The firm demonstrates a personalized approach to custom-tailored solutions and an unwavering commitment to client service. With over 35 years of experience as a Certified Public Accountant (CPA), Jacob oversees the firm’s wealth management division and specializes in working with business owners and affluent families.
For the eighth year in a row, Bernath + Rosenberg has been named as one of the leading CPA firms in financial planning by Accounting Today, a publication that receives hundreds of submissions each year and features the Top 150 Firms in the nation. Jacob is a CERTIFIED FINANCIAL PLANNER™ practitioner and holds the Personal Financial Specialist designation from the American Institute of Certified Public Accountants (AICPA). To learn more about Jacob, connect with him on LinkedIn.
